Unemployment insurance eligibility rights: Evidence from a comparison of Australia and Canada

Abstract

The Australian unemployment assistance scheme possesses two major features which differentiate it from North American programs. First, no qualifying period of employment is necessary. Second, benefits may be paid for an unlimited period. Analysis of the individual's work-leisure choice provides a number of predictions of the likely impact of these arrangements upon the probability of being in various labormarket states. These predictions are tested by comparing Australian unemployment flow and duration data with data for Canada.